Philippine real estate forecasted to weather the storm in 2023
Investors remain optimistic, confident that the sector will defy the odds and rise up
The Philippine property market has been showcasing signs of resilience and stability despite facing headwinds, including the pandemic and natural disasters. According to Cyndy Tan Jarabata, the president of TAJARA Leisure & Hospitality Group Inc. and the Chairperson of the PropertyGuru Philippines Property Awards judging panel: “There is a positive outlook for the Philippine property market this year, with new developments outside Mega Manila, Cebu, and Davao.
Decentralising key city centres have presented new asset classes and opportunities for developers to master plan communities that promote an equitable living environment where ‘walkable communities’ or ‘live-work-play’ environments truly thrive. Numerous road networks have also made travel faster and more convenient,” she added.
Santos Knight Frank‘s recent report shared with the Property Report team is in line with this statement, citing the country’s economic growth and favourable demographics as key drivers for growth. Their findings revealed that the Philippine real estate market is expected to remain strong, particularly in the residential, office, and industrial sectors. The growing demand for office spaces, driven by the country’s booming outsourcing industry, is projected to continue fueling growth in the office segment. The industrial sector is also poised to benefit from the growing e-commerce and logistics industries, which have become even more crucial amid the pandemic.
As for the residential market, this segment is anticipated to remain buoyant, with the middle-income segment driving demand for affordable housing. The report also noted that the luxury residential sector is starting to rebound, particularly in key urban areas like Metro Manila, where a rise in demand from both local and foreign buyers has been observed.
“In hospitality and tourism, luxury resorts are in the pipeline including new masterplanned developments in destinations like Palawan and Bohol, including Batangas and Laguna. There’s a strong interest in developing luxury and branded residences, especially from boutique developers. Residential developments remain strong outside of the city and there is a huge backlog to address demand on affordable and socialised housing,” added Cyndy.
Related: The 11th PropertyGuru Philippines Property Awards renew optimism in the Visayas and Mindanao real estate markets
Leading Philippine winners from the highly anticipated PropertyGuru Asia Property Awards Grand Final gala in 2022—namely Best Industrial Developer (Asia) Aboitiz InfraCapital Economic Estates, Best Lifestyle Developer (Asia) Global-Estate Resorts, Inc. (GERI), Best Branded Residential Development (Asia) AppleOne Mactan, Inc., Best Hospitality Architectural Design (Asia) Cebu Landmasters, Inc., and Best Office Architectural Design (Asia) Arquitectonica—have been gearing up to take advantage of the current positive environment.
Further data from JLL highlighted other key drivers that would carry the Philippine real estate market forward amid the current headwinds, including the government’s “Build, Build, Build” infrastructure programme, which aims to boost economic growth and create job opportunities, and the continued growth of the outsourcing industry, which has been a major contributor to the country’s economy.
JLL also noted the importance of sustainability and the increasing adoption of green buildings in the industry. This is expected to drive demand for energy-efficient and environmentally friendly properties, particularly in the office and industrial segments.
As the Philippine property market moves forward, stakeholders in the industry must continue to adapt to the changing landscape and explore new opportunities for growth. With the right strategies and a positive outlook, the industry can weather the storm and emerge even stronger in the years to come.
Seen any award-worthy residential, commercial, or industrial projects in the archipelago? Nominate them for the 11th annual PropertyGuru Philippines Property Awards on or before 14 July 2023. To know more, visit AsiaPropertyAwards.com/Award/Philippines/.
Gynen Kyra Toriano, Digital Content Manager at PropertyGuru, wrote this article. For more information, email: [email protected].
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